Virtusa crosses $100 Million Quarterly Revenue Milestone

Virtusa Corporation has announced its consolidated financial results for the third quarter of fiscal year 2014, ended December 31, 2013. Revenue for the third quarter of fiscal 2014 was $101.0 million, showing an increase of 17% year-over-year on both a GAAP reported and constant currency basis. Sequentially, revenue increased 7% in reported currency and 6% on a constant currency basis. 

Virtusa reported income from operations of $11.2 million for the third quarter of fiscal 2014, an increase of 14% compared to $9.8 million for the second quarter of fiscal 2014, and an increase of 22% compared to $9.1 million for the third quarter of fiscal 2013.    

Net income for the third quarter of fiscal 2014 increased to $9.3 million, or $0.35 per diluted share, compared to $7.5 million, or $0.28 per diluted share, for the second quarter of fiscal 2014, and compared to $7.4 million, or $0.29 per diluted share, for the third quarter of fiscal 2013. The Company also generated $17.6 million of cash from operating activities during the third quarter of fiscal 2014. 

Ranjan Kalia, Chief Financial Officer, Virtusa, said, “During the third quarter, we delivered broad-based growth across our client portfolio as well as geographies.  As we continue to scale and win larger programmes, we are realizing more opportunity for resource optimization resulting in operating margin expansion. Our strong cash position continues to provide the Company with increased flexibility to invest for growth and capture operating efficiencies.”

The Company’s fourth quarter and fiscal year 2014 diluted EPS estimates assume an average share count of approximately 28.9 million and 27.0 million, respectively (assuming no further exercises of stock-based awards).